A startling video resurfaced from a 2018 state fraud case shows Minnesota parents dropping off their children at a daycare—only to walk out with them just moments later—while authorities investigate a sprawling, billion-dollar fraud scheme in Minneapolis.
The surveillance footage, dated 2015 and obtained by Fox 9, shows parents signing their children into the daycare—allowing providers to bill the state for full days of care for kids who were never actually there.
Some days, not a single family would show up—but the daycares still claimed government reimbursements, Fox 9 reported at the time.
Surveillance video shows Somali parents bringing their children to the daycare, checking them in, and then walking out with them just minutes later. via FOX9
The so-called fake daycare centers also handed out kickbacks to the parents who took part.
Another video obtained by Fox 9 shows a man handing an envelope to a parent—allegedly a kickback for taking part in the scheme.
Ibrahim Ali, the son of the Quality Learning Center’s owner, spoke to the press outside the daycare at the heart of the alleged fraud scheme. LP Media for NY Post
The clips—recorded in 2015 but only revealed in 2018—resurfaced amid public outrage after independent journalist Nick Shirley’s viral video exposed multiple Minnesota daycare centers that had received millions in state funding while appearing completely inactive.
Adults and children can be seen arriving at the Quality Learning Center in Minneapolis. LP Media for NY Post
U.S. Education Secretary Linda McMahon described the alleged fraud as a "breathtaking failure."
Minnesota authorities began cracking down on the schemes in 2014, and by 2018 they were investigating dozens of businesses suspected of pocketing millions in government funds for bogus childcare services.
The allegations come from a viral video by independent journalist Nick Shirley, which documented visits to several Minnesota daycare centers. X / Nick Shirley
Additionally, Minnesota Gov. Tim Walz has faced criticism over other alleged scams tied to Medicaid-funded disability programs, including a housing initiative designed to help seniors and people with disabilities find and move into homes.
Many of the alleged scams have involved Minnesota’s Somali community.
Surveillance footage shows children being dropped off at the daycare—only to leave just minutes later. via FOX9
FBI Director Kash Patel said the agency has sent personnel and investigative resources to Minnesota as part of an ongoing effort to "dismantle large-scale fraud schemes exploiting federal programs."
A sign with a glaring typo reads "Quality Learing Center" in Minneapolis. X / Nick Shirley
Patel said the childcare allegations were "just the tip of a very large iceberg" and warned convicted scammers that they could face deportation.
